In an era of abundance and overwhelming choice, customer relationships, not products, are the most important source of competitive differentiation. Customers want trusting and close relationships because these types of human bonds reduce stress and help people adapt to a rapidly changing world. This is a surprise to many companies who find profitable customer relationships elusive.
It is widely accepted that strong customer relationships lead to commitment and loyalty, and take the focus off of price. Yet, most companies find themselves competing on price, convenience and incentives. In effect, companies bid for customers’ business and are inadvertently discouraging loyalty. This is the norm!
At the core, relationships are dependent on the emotional consequences of customers’ experiences dealing with a company, its people and in the consumption of its product.
Relationship value ensues from the customer experience. My new book, Addicted Customers: How to Get Them Hooked on Your Company, lays out the psychological principles that define gratifying customer experiences and provides business strategies to put these principles into action.
Why aren’t businesses more successful in developing profitable and sustainable customer relationships? Why don’t they deliver the experiences customers value and reward with commitment? A major source of the problem stems from differing definitions of value. A recent study by Bain and Company highlights this divergence. Eighty percent of business leaders believe their companies are doing a good job in the way they treat customers. Only eight percent of customers agree. Research by IBM confirms another source of disconnection. Nearly three quarters of the business leaders surveyed admit that they are much more likely to focus on operational efficiency than trying to understand what customers want and value. Yet, the evidence indicates that customers abandon vendors primarily because of their customer experiences, not the products.
For the complete paper go to: www.thewhetstoneedge.com/papers/psychology.pdf
Hi John,
I have been going out on blogsites about customer psychology to promote your webinar … and strangely, I found your blog so I thought it was appropriate to post the announcement here as well.
The Whetstone Edge announces that Managing Partner, John I. Todor, Ph.D. and Randy Saunders of Cincom System will be presenting two webcasts entitled Hooked: The Psychology of the Customer Experience. Both webcasts will take place on March 21, 2007. The first is schedule for the convenience of European participants, the second for those in North America.
The webcasts are sponsored by Cincom Systems and the registration link is www.cincom.com/hooked.
How do you get customers hooked on your company? The answer begins with the psychological principles that underlie compelling customer experiences. Join renowned author and speaker, John Todor, Ph.D., as he combines research, practical methodologies, and real-world examples of successful companies to explore these topics:
The psychological principles that underlie compelling customer experience — The two distinct buying personalities that customers employ — How to avoid the triggers that turn on the less desirable personality — Strategies to engage the personality that leads to loyalty and commitment — How to turn indifferent customers into committed (addicted) customers.
Left by Dale Wolf on March 4th, 2007